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Valued as a mature, profitable company: Discounted cash flow, P/E comparison, EV/EBITDA comparison, and Graham number.
ACCE opinionFormFactor Inc. FormFactor Inc. Common Stock (FORM)
Fair value (2 models)
Not available
ACCE price target
$101
Rating
Not rated
Horizon
12 months
ACCE price target published on 23 Oct 2026, 01:52 CEST; previously $135 since 27 Sept 2026, 00:00 CEST.
Price used: $98.51 at the close on 23 Oct 2026, 22:00 CEST.
Models: Discounted cash flow, EV/EBITDA comparison, Graham number, and P/E comparison.
Fair value: the average of the applicable valuation models (discounted cash flow, multiples, residual income, dividend discount, shareholder yield), each run on the latest financial statements and the market price shown. Opinion columns (fair value, target, rating) are shown apart from the data. Full methodology: acceinvestments.com/data/how-we-value-stocks
Conflicts of interest: The author holds no personal position in this security. General statement
Produced by ACCE Investments (acceinvestments.com)
Data
ACCE score
59
out of 100
Analysts
60% buy
10 covering
P/E
67.9x
forward 25.4x
1-year return
+129.9%
Dividend yield
0.00%
FormFactor Inc. FormFactor Inc. Common Stock in four questions
Plain answers, details below
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Overview
ACCE thesis
FormFactor makes wafer-level probe cards and test interfaces that semiconductor makers use to check chips before they are packaged, with its MEMS-based probe technology a core part of the line. Its edge is a qualified position inside customer test flows, where switching a probe card means requalifying a device, which gives the company sticky, recurring revenue tied to chip volumes. Revenue growth of 31.9% is the headline, and the stock trades at 33.8x forward earnings against 88.3x trailing, so the market is pricing in a sharp step-up in profitability. The 46.2% gross margin and 24.1% operating margin show the business is earning well on the volume it has, though an 11.0% ROE says the equity base is still large relative to earnings. The score of 68/100 and the absence of index membership suggest the name is a mid-cap story that needs its margin recovery confirmed before the valuation gap closes.
⚠ Investor warnings · 3 flagsAI-assisted·How I use AI
high
Valuation disconnect from fundamentals
P/E 96.3 vs forward P/E 36.9 signals earnings spike unlikely to sustain. Current price $139.67 sits above ACCE fair value $135.00; limited margin of safety.
high
Earnings quality concern
YoY earnings +502.5% vs revenue +31.9% indicates one-time items or margin expansion unsustainable. 5-year revenue CAGR only +1.6% shows historical stagnation.
moderate
Insider selling pressure
Last 10 disclosures show $6.56M in insider sales, zero buys. Insiders own only +0.8% despite $10.9B market cap, suggesting limited conviction.
AI research notes
AI-assisted·How I use AIWritten Oct 11, 2026 · figures from 2026-06-30 · prices to Oct 23, 2026
Why it could do well
Revenue surged 31.9% year over year, driven by strong advanced semiconductor demand.
The company generated $115M in free cash flow with minimal debt at 0.03x equity.
Earnings beat expectations by 45.1%, and 55% of analysts rate the stock Buy or Strong Buy.
Why it could disappoint
The trailing P/E of 96.3x is extreme and leaves no room for any growth disappointment.
Five-year revenue growth averaged only 1.6% per year, so current 31.9% growth may not persist.
Each chip shows the exact figure and where it comes from. A claim without a source is not published.
Next results
Oct 28, 2026
We update the fair value about 2 days after the results, once the new figures are filed.Add to calendarGoogle
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Valuation
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Where FORM's valuation models land
Price
$98.51
Model fair valueConfidence: medium
$79.21
Model
Fair value
Upside
Discounted cash flow
EV/EBITDA comparison
Graham number
P/E comparison
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Quality
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